Asian stocks rose for a second day on Tuesday after the Reserve Bank of Australia joined the European Central Bank in cutting interest rates to record lows to boost economic growth. A fall in commodity prices following recent gains and renewed concerns about the economic outlook in China and the euro area tempered positive sentiment to some extent.
Japan's Nikkei index rallied 3.6 percent to end above the 14,000 mark for the first time since June 2008, as sentiment was buoyed by a weaker yen and stronger-than-expected U.S. jobs data for April released over the weekend. The broader Topix index also jumped over 3 percent to close at 1,189, exceeding the 1,177 mark logged in September 2008 just before Lehman Brothers filed for bankruptcy protection. The Japanese market was closed on Friday and Monday for national holidays.
Automakers led the gainers, with Toyota Motor climbing 5 percent ahead of its earnings tomorrow, while Honda Motor added 4 percent and Suzuki Motor soared over 7 percent. Sumitomo Rubber jumped 5.7 percent, Sony rallied 6.4 percent and Tokyo Electron added 6.8 percent. Mitsubishi Heavy Industries advanced 4.9 percent after the company and its partner Areva SA of France won a deal to build a nuclear power plant in Turkey.
China's Shanghai Composite index closed up 0.2 percent ahead of trade and inflation data due later this week, while Hong Kong's Hang Seng index gained 0.6 percent to end at its highest level since March 11. SJM Holdings rallied 3 percent after the casino company posted a 12 percent increase in first-quarter net profit.
Australian shares ended in the red despite the Reserve Bank's unexpected interest rate cut. The RBA cut its key interest rate by 25 basis points to a record low of 2.75 percent, saying low inflation allowed it to cut rates to encourage sustainable growth in the economy. Inflation is currently consistent with the target, but the "unusual" strength in the currency is a cause for concern, the central bank said. The benchmark S&P/ASX 200 briefly rose after the decision before ending down 12 points or 0.2 percent at 5.144.
Lenders Commonwealth and Westpac fell about 2 percent each after rising sharply last week on the back of earnings. NAB shares declined 1.6 percent after it became the first of the big four to pass the full rate cut to its mortgage customers. ANZ lost a percent. Telstra shed a percent on news it will pay 1.3 billion Australian dollars to access new mobile spectrum offered by the government.
Linc Energy shares tumbled 18 percent after it decided to delay an oil well project in Alaska. Global miners BHP and Rio Tinto closed up over 2 percent each after copper hit a three-week high on optimism over U.S. economic growth. In economic releases, a report from the Australian Bureau of Statistics showed that the nation's trade balance swung into surplus in March compared with a deficit of $111 million in February.
South Korea's Kospi average closed 0.4 percent lower, with concerns over a weaken yen and caution ahead of the Bank of Korea's policy meeting on Thursday weighing on sentiment. Automakers Hyundai Motor and Kia Motors fell about 2 percent each on reports weekend and holiday shifts are not being enforced as agreed upon recently.
New Zealand shares rose, led by retailers after Paymark network, which processes 75 percent of the country's electronic transactions, said seasonally adjusted spending on electronic cards, excluding fuel, rose 2.1 percent in April. Michael Hill International rose 1.4 percent, the Warehouse Group rallied 3.7 percent and Kathmandu Holdings soared 4.4 percent.
Heavyweight Fletcher Building rose over 3 percent, Contact Energy gained 1.9 percent and Infratil added 1.7 percent, helping lift the benchmark NZX-50 up 0.6 percent to a record high.
Retirement village operator Summerset Group edged up 0.3 percent after it unveiled plans to list its shares on the Australian stock exchange. Xero led the decliners on the exchange, falling 3.7 percent on profit taking after sharp gains this year.
Elsewhere, Singapore's Straits Times index was moving up 0.1 percent, India's Sensex was gaining 0.9 percent, Indonesia's Jakarta Composite index was up 0.8 percent and Malaysia's KLSE Composite index was up 1.2 percent, while the Taiwan Weighted edged down marginally.
U.S. stocks ended Monday's session on a mixed note, as investors paused for breath after a rally that lifted the Dow and S&P 500 to record highs last week. Shares of banking giant Bank of America rose sharply on news of a key mortgage securities settlement with MBIA and tech giant Apple rallied on analyst upgrades, helping to limit the downside. The Dow edged down marginally, while the tech-heavy Nasdaq rose 0.4 percent and the S&P 500 advanced 0.2 percent.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.